Real Trading Competition Monthly Summary: January 2026 Reflection

This document provides a comprehensive overview of the recent monthly trading competition, highlighting key achievements, lessons learned, and areas for improvement. Participants are encouraged to review their performance, analyze strategies, and set goals for the upcoming month to enhance their trading skills and results.

*Trading performance overview*

### Highlights of January 2026
- Achieved an average return of 12% among participants
- Notable strategies included momentum trading and risk management techniques
- Several new traders surpassed previous performance records

### Challenges Faced
- Market volatility led to unexpected losses for some
- Overtrading issues were observed in a few accounts
- Need for better emotional control during high-pressure situations

### Lessons Learned
- Importance of disciplined trading plans
- Necessity of continuous learning and strategy adjustment
- Value of maintaining a balanced risk-reward ratio

### Goals for Next Month
- Improve risk management practices
- Increase focus on technical analysis
- Participate in educational webinars and workshops

We thank all participants for their dedication and look forward to a successful February 2026. Keep analyzing, practicing, and striving for excellence in your trading journey!

I signed up for a live trading competition on New Year’s Day. My January returns were decent. Seeing many fellow investors关注我, and some friends privately messaging me with questions, I took some free time over the weekend to review and summarize my investment situation in January, also as a record for myself. [Taogu Ba]

The statistics from Tonghuashun show that the net asset return rate of my credit account in January was 176.18%, while Taogu Ba’s live trading competition reports a return of 158.45% (the competition did not include the returns from January 5th. Additionally, to clarify: I initially registered with a starting amount of 80,000 yuan. Due to a system error, the system mistakenly captured the total assets of the credit account from a screenshot of the order placement in the first two days. After communication, on January 7th, I withdrew 100,000 yuan, and the system data was adjusted from total assets to net assets of the credit account).

My live trading experience in January went through three phases:

Phase 1: Main Uptrend (both the market’s main rally represented by commercial aerospace and my account’s main increase, from January 5 to January 14, with approximately 180% gains). When the market is good, you should increase your position boldly. The most exciting day was January 8. I was on a business trip that day, and on the train to Hongqiao Station, I sold Siling Zhqu (not a mainline stock, but surged then quickly fell back, not strong enough) and Shunhao Shares (caught an abnormal move, hit the limit up that day, but there was continuous selling on the limit, so I decisively cleared the position: perhaps because the next trading day faced abnormal activity, but regardless of the reason, I sold decisively when strong). After clearing, I saw Goldwind Technology’s volume increasing and rising steadily (at the same time, Luxin Venture Capital, with a similar logic, had a large buy order), so I quickly used margin to buy full position. I also liked the logic of my target stock, Qianzhao Optoelectronics, which was gently rising with moderate volume, so I bought full position confidently. After work, I discussed some matters with clients, and only after finishing did I realize that both Goldwind Technology and Qianzhao Optoelectronics hit the daily limit up that day. My role was to judge the market’s water temperature, decide what and how much to buy. The result was probably a gift from the market, and I gained 31% that day.

Phase 2: Volatility Stage (Commercial aerospace experienced a strong correction due to invisible forces. Fortunately, I was quick to enter and exit, avoiding a big loss, and I benefited from two waves of gains in storage chips and gold. From January 15 to January 23, with about 15% gains). On January 13, aerospace stocks exceeded expectations for the first time. I avoided the aerospace correction by holding Tuoersi and Dian Diagnostic. I mishandled Dian Diagnostic’s position when it broke the limit at the close, reducing my gains from 23% intra-day to 6%. Luckily, I saw the strength of AI applications and predicted a recovery the next day, so I added core AI stocks like Yidian Tianxia and Dian Diagnostic at the close, which gained 17% the next day. On January 15, aerospace stocks again exceeded expectations. Many experts decisively cleared positions and waited because Tianyin Electromechanical was heavily weighted and had some luck-driven psychology (it performed strongly that day, outperforming other stocks, but the entire sector was weak). I finally cut at -10%, with a 19% decline that day. In the afternoon, I observed storage chip core stocks rising volume-wise, considering the market size of over 3 trillion yuan, I fully bought three storage core stocks including Jiangbolong, and on January 16, I gained 19.5%. On the 20th, I also caught a loss from the failed acquisition of Hualing Cable, with a 13% decline. After clearing, I noticed gold stocks rising along with international gold prices, and based on memory, I added Xiaocheng Technology and Chifeng Gold to my watchlist, buying five layers of each. The next day, I also gained 17%. On January 23, driven by three days of continuous recovery in aerospace electronics, the commercial aerospace sector rebounded strongly, and I heavily invested in Zhenlei Technology, gaining 19%.

Phase 3: Pullback Stage (Rotations among commercial aerospace, chemicals, and AI applications, with strong gold and silver prices. I lost track of the rhythm and my mindset became a bit chaotic, with a decline of about 20% from January 26 to January 30). Looking back, on the evening of the 25th, I saw news that international gold prices broke through $5,000, and I should have promptly prioritized Xiaocheng Technology, Chifeng Gold, and other stocks in my watchlist. On the morning of the 26th, the aerospace sector continued to fall more than expected. I sold Zhenlei Technology and China Satellite Communications but did not enter gold stocks, instead moving into relatively safer CPO stocks (Liante Technology, Tianfu Communications; but I didn’t hold on to them). Perhaps I missed the main rally of gold, which affected my mindset (I had already gained from gold stocks on the 21st, so switching to gold at this stage should have been easy for me). Missing the best timing for gold, I made poor trades in chemicals (holding core stock Hongbaoli, but lacked broader vision) and AI applications, bouncing between positions. On the 30th, I reduced my holdings and shifted back to aerospace development, lowering my pace, adjusting, and preparing for February. I personally believe that commercial aerospace still has potential, and recently, it’s just a matter of which stocks will rise, when they will rise, and whether I can control the rhythm and focus on core stocks.

My January trading can be roughly divided into these phases. Since some friends asked about it in comments, I made a general review and summary for sharing.

Everyone knows that in this market, the key is to survive longer, because markets will always exist. The longer you survive, the farther you can go. The most difficult lesson is how to survive long-term. My only goal this year is to “control drawdowns.” I’m not worried about my stock-picking ability or my courage to bet, but I am very concerned about whether I can control my drawdowns. After some reflection, I set a few rules for myself to control drawdowns, and I’m happy to share them here:

Rule 1: No hitting the limit-up. During my two years of short-term trading, I lost quite a bit of money on consecutive limit-ups. The leading stock strategies and consecutive limit-up strategies in the market have long been mastered by quantitative robots. Nowadays, trying to do consecutive limit-ups is mostly a game of life and death. Looking back at my January trades, I traded 37 stocks, only 2 of which were bought on limit-up (about 5%), on January 6 with Haige Communications (before Chen Xiaoqiun’s involvement, Haige’s position in the sector was not high; it surged above others on that day to confirm its status), and on January 12 with Dian Diagnostic (AI application was very strong then, and it turned from weak to strong that day). Sometimes, you can get good returns without relying on hitting the limit-up. I think my January operations are a good example.

Rule 2: Diversify positions. The biggest benefit of diversification is to avoid catastrophic losses, adjusting individual stock positions to a level that suits my mindset. When a stock incurs losses, I can cut without too much emotional fluctuation, which is the most appropriate approach.

Rule 3: Strict stop-loss. If a sector experiences an unexpected strong decline (like the strong retreat on the 13th and 15th in commercial aerospace), it’s always correct to cut and wait, which is the best way to control drawdowns.

Rule 4: No obsession, no rush to recover. Many people lose more in the market because they are anxious to “recover losses.” Initially, they might only lose a few ten-thousand yuan, but rushing to recover by increasing positions at inopportune times leads to bigger losses. In such a market, it’s essential to keep testing with small amounts, find a strategy that suits your personality, and gradually increase positions. Rushing to recover losses and increasing positions will, with 90% probability, lead to more losses.

Sharing these insights today, I’ll also post two screenshots of Tonghuashun account analysis: